Dairy, Auto Mall Set To Build In N. Aurora

July 28, 1993|By Hal Dardick, Special to the Tribune.

North Aurora, a village of 5,930 people on Aurora's northern border, has stolen some of the larger neighbor's economic development thunder.

Oberweis Dairy of Aurora plans to build a new plant in North Aurora and an automobile shopping mall originally touted for Aurora also is likely to end up in the village to the north, officials announced Monday.

In making the announcements, North Aurora Village President Michael Mudry indicated that the two projects would improve the economic base of the village, part of the greater Aurora area.

"It helps the whole area," Mudry said. "We think it's a good thing."

Both projects, however, would reduce Aurora's property tax income, with the auto mall adding to a recent movement of car dealerships from the city, an exodus the city has tried to stem by offering tax incentives to new and expanding dealerships.

In the case of the auto mall, the city also would lose vital sales tax dollars.

Initially, the auto mall project was slated for Aurora, but efforts by former mayoral candidate Barbara Kattermann to broker the deal fell flat.

"We regret their decision to locate north of the tollway . . . in part due to our extensive efforts to work with them on a site in Aurora," said Aurora Economic Development Commission Executive Director Paul Borek.

"I think it's unfortunate communities have to fight like they do for sales tax dollars," he added. "It becomes more of a territorial consideration than just the overall area economy."

Borek said, however, that the success of Oberweis Dairy is good for the entire region, and pointed out that the auto mall in North Aurora would spur development of a new commercial area.

Both North Aurora projects have yet to be introduced to the Plan Commission, but Mudry said he expects them to be approved by the Village Board.,

Oberweis could break ground as early as January, and the auto mall could be selling cars by 1994, Mudry said.

Oberweis, the family dairy that delivers bottled milk throughout the six-county metropolitan area, has outgrown the plant it now uses at 945 Lake St., said dairy President Elaine Oberweis.

"We're operating a plant that was designed in the early 1950s at 115 percent capacity, and we tried to figure out how to expand, but couldn't do it at this site," Oberweis said. Her husband, James, bought 22 acres of property in North Aurora between the Aurora Pump site, 800 W. Airport Rd., and Randall Road.

Between 7 and 10 acres would be used for the new dairy, 3 would be sold to a firm called Reliant Data and the rest would be bought by an as-yet unidentified third corporation, Oberweis said.

The Oberweis Dairy has been a fixture in Aurora since James' grandfather, Peter Oberweis, opened it in 1927. The operation currently employs 50 full-time and up to 40 part-time workers.

Elaine Oberweis said the business is expanding and might hire additional employees in the future.

Meanwhile, the village already has entered agreements with three car dealerships, two of which now are located in Aurora, to build the auto mall on 30 acres just northeast of the Orchard Road interchange on the East-West Tollway.

The land is part of a 432-acre parcel owned by Western Development, headed by George Brumis, Mudry said. Brumis, the dealerships and village officials have been working on the plan for several months, he said.

"The concept and all the rough details are worked out, and it's just a matter of taking it through the planning process," he said.

Mudry said the village will buy the land and develop its infrastructure, at a cost of $1.7 million to $2.5 million, and deed the land to the dealerships. The village expects to recoup the cash outlay from its share of sales tax revenues at the dealerships.

The project would be the first in what has been dubbed the Orchard Road Corridor, an area of future development that both Aurora and North Aurora are counting on to spur economic growth.

"The whole corridor needs a little help along, and I think this will do it," Mudry said.